FX.co ★ EUR/USD analysis for January 07 2021 - Potential completion of the bigger ABC correction and space for upside continuation towards 1.2340

ECB's Weidmann: ECB must ensure emergency tools don't turn permanent

Comments by ECB hawk, Jens Weidmann

• Economy won't suffer slump similar to Q2 last year
• Second virus wave to interrupt recovery in winter half

The headline comment is notable as it will be more of a heated topic later in the year if the economic recovery keeps on track. That will also start to bring into question the PEPP fulfilment by the ECB before it expires in June next year.

Further Development

Analyzing the current trading chart of EUR/USD , I found that there is potential for the completion of the ABC downside correction based on the hourly time-frame.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Lumber and Coffee today and on the bottom VIX and Ethanol.

Key Levels:

Resistances: 1,2305 and 1,2350

Support levels: 1,2260 and 1,2250